Electronic transfers

“Pay yourself” scams are becoming common scenarios

The report was part of an investigation launched earlier this year by US senators that examined Zelle and several other banks associated with Zelle.

PHOENIX – A new report from the US Senate shows that scammers targeting payment service app users, such as Zelle, have occurred more often in the past two years.

Scammers use service apps to extort money from people who don’t even know they’ve been affected until it’s too late.

“$7,500 is gone,” Marshall Cheeseboro told 12News last month.

Cheeseboro has fallen victim to a “Pay Yourself” scam where scammers pose as bank employees and ask you to transfer money to you using a payment service app.

The crooks then take over your account and take your money.

“They changed the routing information so that once I sent it back to who I thought was myself, it was actually sent to them,” Cheeseboro said.

The report was part of an investigation launched earlier this year by US senators, which specifically looked at Zelle and several of the banks associated with the company.

Since the start of 2021, 192,878 scams and fraud cases have been reported. In these cases, only about 3,500 of them have been reimbursed by their banks.

12News contacted Zelle about the report. They sent the following statement:

“Tens of millions of consumers use Zelle® without incident, with more than 99.9% of payments completed without any reports of fraud or scams. transactions in 2017 to 1.8 billion in 2021, while the proportion of frauds and scams has steadily declined.In addition to our seven owners, we currently have more than 1,700 banks and credit unions of all sizes offering Zelle® in their app. Reports that Zelle® does not reimburse consumers are inaccurate. Zelle® is not a financial institution; it does not hold or transfer consumer money, or operate consumer accounts. Transactions Zelle®, made through financial institutions on the Zelle® network, are subject to the Consumer Protection Framework that applies to Electronic Fund Transfers. ds under EFTA and E-regulations. In addition, Zelle® has gone above and beyond E-regulation requirements and has adopted a “zero liability” approach requiring all participating network institutions to reimb urse in its entirety for any transaction deemed unauthorized. »

– Early Warning Services, LLC, the network operator of Zelle®.

“There’s nothing you can really do about it, and then you have like, what, $2,000 left in your account and you have all these bills you have to pay,” Cheeseboro said.

Cheeseboro now warns others to be vigilant, so the next time you send money, it doesn’t fall into the wrong hands.

If you think you have received a suspicious alert or a phone call from your bank, you are advised to hang up and call your bank using the number on the back of your card. Also, your bank will never ask you to send you money.

RELATED: Valley Man Loses $7,500 to ‘Pay Yourself’ Scam

RELATED: 6 Ways to Spot a Mobile Payment App Scam

Up to speed

Keep up to date with the latest news and stories on the 12News YouTube channel. Subscribe today.

https://www.youtube.com/watch?v=videoseries